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China's Didi to build an electric car with CHJ Automotive

Didi Chuxing app. Photo: Zhang Peng/LightRocket via Getty Images

Chinese ride-hailing giant Didi Chuxing will build electric vehicles via a joint venture with CHJ Automotive, a local automotive startup that also announced RMB3 billion (US$473 million) in new funding, according to mediareports.

Why it matters: As ride-hailing services continues to grow in prevalence and replace car ownership, electric cars can help them be more efficient. Didi and others like Uber have already been experimenting with and promoting EVs for their services.